TEL AVIV, Israel – RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the third quarter ended September 30, 2020.
"We are pleased with our revenue growth and bottom line improvement in the third quarter and year-to-date. Our financial results were driven by a strong customer base and controlled expenses, while we continued to invest in research and development," commented Eyal Harari, RADCOM's CEO. "During the quarter, we enhanced our technological capabilities in 5G and strengthened our position as the leading 5G assurance provider.”
"We won a 5G assurance contract with Rakuten Mobile, which is one of the industry's first standalone 5G assurance contracts. This is an additional multi-year agreement with Rakuten Mobile to assure their 5G network with our 5G assurance and analytics solution, RADCOM ACE, launched in August. Rakuten Mobile has selected our solution for its non-standalone 5G service launched in September, and its standalone 5G service launch, expected to occur in 2021. This selection represents a key milestone along our 5G journey and is an important acknowledgment of the value that our solutions provide operators in assuring the customer experience in dynamic, cloud-native networks.”
"We consider this 5G contract as a good sign that the 5G market is evolving, supporting our view that some operators are moving beyond the initial step of selecting their network providers to choose assurance vendors. We believe this gradual market shift will spur additional opportunities for us, which we are well-positioned to capitalize on with our innovative solution, RADCOM ACE. We believe that our strong cash position and multi-year contracts will enable us to navigate through the market uncertainty caused by COVID-19 while continuing to ensure the health and safety of our employees, vendors, and customers. Based on our solid visibility and focused execution, we expect 2020 to be a growth year and reiterate our full-year 2020 revenue guidance of $35 million to $38 million."
Third Quarter 2020 Financial Highlights:
Total revenues for the third quarter were $9.8 million, compared to $9.4 million in the third quarter of 2019.
GAAP net loss for the third quarter decreased to $0.4 million, or $0.03 per diluted share, compared to a GAAP net loss of $1.7 million, or $0.12 per diluted share for the third quarter of 2019.
Non-GAAP net income for the period was $0.2 million, or $0.02 per diluted share, compared to a non-GAAP net loss of $1.0 million, or a loss of $0.07 per diluted share for the third quarter of 2019.
As of September 30, 2020, the Company had cash and cash equivalents and short-term bank deposits of $65 million and no debt.
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